Axa strikes sale agreement with Phoenix Group

Axa has struck an agreement to sell its UK investment, pensions and direct protection businesses to US firm Phoenix Group.

The £375m deal, which will see Phoenix take control of the Sun Life and Embassy brands, is part of the French insurer's programme to divest from the UK and Europe in favour of higher growth markets.

Phoenix Group's chief executive Clive Bannister said the acquisition represents "another important step forward" in the firm's growth strategy.

He added: "We will invest heavily to ensure a smooth transition of the two businesses from Axa to Phoenix and we are committed to delivering the highest level of service.

"Looking ahead, we believe there will be further consolidation in the UK life industry and we will continue to explore further opportunities as they arise."

In April, Axa also sold advisory business Elevate to Standard Life. Together, the deals have raised £632m for the firm.